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3 years ago

A mutual fund has $2 million in cash and $6 million invested in securities. It currently has 1 million shares outstanding.

Business

1 answer:

Mamont248 [21]3 years ago

5 0

Answer:

a. NAV = 8 per share

b. 250.000 shares

c. 7.95

Explanation:

a. NAV = Market value of shares/number of shares = $8m/1m = $8 per share

b. At the current NAV, it can absorb up to $2 million, or 250,000 shares.

c-1. Its loss by selling 25,000 shares of IBM at $34 instead of $36 = -$2 x 25,000 = -$50,000.

New NAV = $7,950,000 /1m = $7.95

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Suppose you are committed to owning a $215,000 ferrari. if you believe your mutual fund can achieve an annual return of 10.8 per

Pie

Answer: I must invest <u>$85424.14</u> today in order to buy a Ferrari nine years from now on the day I turn 30.

We have

Price of the Ferrari nine years from now (Future Value - FV) $215000

Expected Rate of return on the mutual fund (r) 10.8%

Time until I turn 30 (n) 9 years

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3 years ago

Which of the following terms refers to a practice of allowing the addition of new employees and jobs to existing bargaining unit

Serjik [45]

Answer:

d. accretion

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3 years ago

The dividend growth model: I. assumes that dividends increase at a constant rate forever. II. can be used to compute a stock pri

Dimas [21]

Answer:

I, II, III, & IV

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3 years ago

Read 2 more answers

Which situation is better for saving money in a CD (certificate of deposit): the purchasing a car or for use in an emergency? Ex

erica [24]

Answer:

Emergency

Explanation:

Always have extra money for problems that arise.

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3 years ago

A positive problem may be viewed as a(n

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Answer:

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Explanation:

hope this helps!

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2 years ago